Ocorian, a global provider of services to high net worth individuals and family offices, financial institutions, asset managers and corporates, has released new research covering family office professionals working in Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt.

The next generation is becoming more involved in the investment strategy of their family office in the Middle East, with a greater emphasis on digital assets and long-term sustainability, according to research from Ocorian.

The trend aligns with firms such as Rothschild & Co setting up shop in Dubai and neighbouring Abu Dhabi, exploiting a rising level of demand for wealth management, for instance inter-generational wealth and business transfer advisory work. Jurisdictions such as Dubai and Abu Dhabi, among others, have been trying to encourage family offices to set up there. 

Ocorian’s study covering family office professionals working in Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt – collectively responsible for around $38.55 billion assets under management – found that 68 per cent of respondents believe that the next generation is taking a bigger role in investment strategy. Around one in five said they are becoming much more involved, the study reveals.

The main focus of their increased involvement is the long-term sustainability of the family office. Eighty-four per cent of those questioned highlighted this area, while 79 per cent pointed to exposure to digital assets as a focus of younger generations in their investment strategy. Around three quarters (74 per cent) of respondents said the growing involvement of younger generations is leading to an increased appetite for risk in investing at Middle East family offices.

Developing strong succession plans has been one of the key ways Middle East family offices have become more professional in their operations and structure, the survey found. Around 65 per cent of those questioned identified that as the best example of increased professionalisation. Around 88 per cent said Middle East family offices have become more professional in the past five years.

However, 86 per cent of respondents believe that ensuring governance meets the needs and expectations of family members remains extremely important for family offices in the Middle East while nearly half said having a robust succession plan in place is a major challenge.